The Federal Reserve just announced, moments ago, they are dropping interest rates to ZERO, and also started a massive new $700 Billion Quantitative Easing program. Quantitative Easing (or QE) is a fancy name for printing more currency and pushing it into circulation.
This is great news for everybody who has been accumulating precious metals, as printing currency is the root cause of inflation. As I have been saying for over a year, when this credit bubble bursts, and it has, the Fed and other central banks will go on a currency printing party like we have never seen before!
It was just last week, the Fed announced a $1.5 Trillion bailout program for the banks as they increased the currency available to the overnight lending markets (aka the “repo” market).
This will NOT be the end of quantitative easing!! There will be more, likely sending the dollar itself into a hyper-inflation. This makes precious metals all the more critical to one’s portfolio!
There are nearly $2 QUADRILLION of derivatives on the books of banks throughout the world. It hard to imagine that a measly $1 Trillion – $2 Trillion will be enough to cover those kinds of losses!
The Fed will actually destroy the dollar in order to save the banks. What they should do is let the failed banks fail. But they won’t! They lost track of their reason to be!